In our view, the large capital outflows from Russia in the first
quarter of 2014 heighten the risk of a marked deterioration in
external financing, either through a significant shift in foreign
direct investments or portfolio equity investments. We see this
as a risk to Russia's economic growth prospects.

We are therefore lowering our foreign currency ratings on Russia
to 'BBB-/A-3' from 'BBB/A-2', lowering our local-currency
long-term rating to 'BBB' from 'BBB+', and affirming our
local-currency short-term rating at 'A-2'. The outlook on both
the foreign and local currency ratings remains negative.

If we perceived increased risks to Russia's creditworthiness
stemming from much weaker medium-term economic growth or due to
reduced monetary policy flexibility, we could lower our sovereign
ratings on Russia further.

For context, this chart from Morgan Stanley shows the large
capital outflows from Russia.